Global CCS Report on India's Carbon Credit Trading Scheme 2023

The report  written by Errol Pinto, a Senior Consultant in Policy and Commercial fields, discussing India’s carbon credit trading scheme and the Indian government’s CCUS (Carbon Capture Utilization and Storage) report. It contains key messages and insights into India’s efforts to address climate change and reduce carbon emissions. Here is a summary of the document:

1. Introduction

• The document discusses recent developments related to India’s efforts to combat climate change, focusing on the establishment of a domestic carbon credit trading scheme and the release of a CCUS policy framework report.

2. India’s Carbon Credits Trading Scheme

• The Energy Conservation Bill was amended to enable the creation of a domestic carbon credit trading scheme.
• Carbon credits will be generated by public and private entities in India to reduce emissions.
• These credits will be tradable within the country, creating a compliance market.
• The Ministry of Power is leading the development of this scheme with an initial focus on energy efficiency.

3. NITI Aayog’s CCUS Report

• NITI Aayog, a central government think tank, released a detailed CCUS policy framework report.
• The report recommends carbon credits as a key policy mechanism for emissions reduction.
• It suggests creating a public sector corporation to promote and finance CCUS projects in India.
• The report also discusses costs, financing mechanisms, and international pricing.

4. CCUS in the Current Indian Context

• The timing of the Energy Conservation Bill amendment and the CCUS Report release coincided with India’s updated Nationally Determined Contributions (NDCs) at COP 27.
• India’s NDCs include ambitious goals for emissions reduction and renewable energy capacity.
• The document highlights the importance of CCUS in achieving these goals, especially in hard-to-abate sectors.

5. Conclusions

• The establishment of a national carbon credit trading scheme is significant for domestic emissions reduction efforts.
• CCUS is not included in the scheme currently but may be considered in the future.
• India’s government is taking steps to understand and promote CCUS technologies, including the establishment of National Centres of Excellence in Carbon Capture and Utilization.
• The document underscores the importance of CCUS in India’s transition to a net-zero economy.

6. References

• The document provides a list of references and sources used in compiling the information.

The document primarily highlights India’s efforts to combat climate change, including the development of a carbon credit trading scheme and the recognition of CCUS as a crucial tool in achieving its climate goals. It emphasizes the government’s commitment to addressing carbon emissions and promoting sustainable practices.

In reference to the report provided above, a “carbon credit trading scheme” would be a specific program or system established to facilitate the trading of carbon credits within the context of carbon offsetting and emissions reduction. The report appears to discuss the implementation of such a scheme as part of a broader strategy to combat climate change and reduce greenhouse gas emissions.

Here’s how a carbon credit trading scheme might work within the context of the report:

1. Emissions Reduction Initiatives: The report may highlight various emissions reduction initiatives, such as renewable energy projects, reforestation efforts, or energy efficiency programs, that have been implemented or supported by a government, organization, or community.

2. Carbon Credit Generation: As a result of these emissions reduction initiatives, carbon credits are generated. These credits represent the emissions reductions achieved by these initiatives and are typically measured in metric tons of CO2 equivalent.

3. Trading Platform: The carbon credit trading scheme would involve the establishment of a trading platform or marketplace where these carbon credits can be bought and sold. This platform may be operated by a government agency, an independent organization, or through public-private partnerships.

4. Market Participants: Various stakeholders, including companies, industries, governments, and individuals, can participate in the carbon credit trading scheme. Those entities seeking to offset their own emissions or demonstrate their commitment to sustainability can purchase carbon credits from the marketplace.

5. Transparency and Standards: To ensure the integrity of the scheme, there are often established standards and guidelines for the certification and verification of carbon credits. These standards help guarantee that the emissions reductions claimed by the credits are real and additional to business-as-usual practices.

6. Report and Compliance: Participants in the trading scheme may be required to report their emissions and offsets, especially if there are regulatory requirements or compliance obligations associated with the scheme. This reporting helps track progress toward emissions reduction goals.

7. Funding and Investment: The revenue generated from the sale of carbon credits can be reinvested in further emissions reduction initiatives or used to support sustainability and climate resilience efforts. This funding mechanism can help catalyze additional projects.

Overall, the carbon credit trading scheme described in the report would serve as a market-based mechanism to incentivize emissions reductions and promote sustainable practices while allowing organizations and individuals to offset their own carbon emissions. Such schemes are a key component of global efforts to address climate change and transition to a low-carbon economy